Ahlibank approves capital increase

Ahlibank EGM approves increase in bank capital. Ahlibank’s extraordinary general meeting yesterday approved the increase of its capital by issuing 5% free shares amounting to 9,540,156 shares, following which the bank’s capital will become 200,343,271 shares. The annual general meeting approved the board’s recommendation for distribution of cash dividends (for the financial year that ended in December 2016) to the registered shareholders at the rate of 10%, and in the form of free shares at the rate of 5%.

Sheikh Faisal (centre) with other Ahlibank directors at the bank’s AGM at the La Cigale

On Ahlibank’s financial performance, chairman and managing director Sheikh Faisal bin Abdulaziz bin Jassim al-Thani said, “We achieved positive results for the year that ended in December, although 2016 was challenging for many industries, including the banking sector, due to the drop and fluctuation in oil prices and other events which affected the economy.”
“We will continue to live by our brand values to be at the heart of the community and our promise to provide the most personal banking experience in Qatar,” Sheikh Faisal added. In 2016, Ahlibank posted a net profit of QR631.7mn. The bank’s balance sheet grew by 18.2% over December 2015 to QR38.16bn, driven mainly by growth in loans and advances.

Liquid assets as a percentage to total assets stood at 27.8% in December 2016 vis-à-vis 23.7% in December 2015, despite “tight liquidity” in the region. Total core funding expanded by 28.8% to reach QR31.1bn last year compared with QR24.1bn in 2015. The funding growth was primarily driven by a 22.7% growth in customer deposits to QR25bn and a 73% jump in stable medium term funding to QR3.8bn in December 2016.
Stable funding as a percentage to total liabilities improved to 11.6% compared with 8.1% in December 2015. Loan to deposit ratio improved to 107% as of December 2016 compared with 118% in December 2015 as a 22.7% growth in customer deposits outpaced a loan growth of 11.7%. Cost to income ratio for 2016 remained steady at 30.7%, reflecting “efficient management” of operating expenses. The return on average assets (ROAA) and return on average equity (ROAE) “stood solid” at 1.84% and 13.6% respectively, despite an increase in balance sheet size and equity base.
Non-performing loans ratio (NPL) improved to 0.82% as of December 2016 from 1.24% in December 2015, reflecting “strong” asset quality. Provision coverage “grew stronger” to 151% from 126% in December 2015, Ahlibank said.